Most of the traders fail in forex trading because they have not any sufficient knowledge to trade forex trading. Most of them comes in forex because of money but they are not willing to learn before start. Always learn the basics before start and also should have good moneymanagement and plan.
- #142
- Last Post: May 30, 2021 11:11am May 30, 2021 11:11am
- | Joined Feb 2011 | Status: Trader | 93 Posts
Is it a statistical fact the 95% of all traders fail in this business, or is this just some myth made up by some company trying scare you into buying their product? Also if 95% do fail and FF makes up a small population of traders in the world, then would that make only a hand full of us here successful? Correct me in advanced if I am wrong I would just like to disprove this myth if in fact it is, thanks…. Happy Trading
Over the last 10 years or so I have noticed this figure has crept up from about 90% to the point where some today are claiming 99% OR MORE are losers.
In Australia there is a prominent academic from one of the major Australian universities who claims that it is impossible for anyone to make money long term by trading Forex. This guy has been on ABC national television pushing these claims. He also claims on his website to be an economic consultant to the Australian government and other South Pacific countries. Why does a high profile individual like this have such a strong agenda to discredit the retail Forex industry. I honestly don't know. My guess is that he may have tried to trade FX himself and lost money so now he has a chip on his shoulder. Believing himself to be a "Very Clever Fellow" his reasoning may well be that if he can't figure it out with all his academic training etc then nobody can.
There is credible evidence available that indicates that the number of people who lose in retail forex is probably of the order of about 80%.
Here is some of the data courtesy of the Australian Securities and Investment Commission (ASIC)
and here is the link to the government website if you want to check out the source for yourself.
https://download.asic.gov.au/media/5...ugust-2019.pdf
Of course there will be plenty of conspiracy theorists around who will claim that the government are lying etc. Believe them if you want to.
The overall figure shown by these and various other government surveys suggests that the average figure is somewhere around 75%. Taken over a longer term, I would expect that figure to rise a bit to say around 80%. That is still a pretty high figure but that is the way this system works. The guys who run this Forex game are obviously in it to make money. If in the long term, retail traders were winning and the big banks were losing they would quickly close down the game and there would be no retail Forex.
That reality however doesn't stop some people like the academic mentioned above getting extremely grumpy about the situation.
Regards
Tim
Don't Guess Test